Historically Underutilized Businesses (HUB)

Program Information

1.1. HUB Policy:

Texas Alcoholic Beverage Commission (TABC)

Historically Underutilized Business (HUB) Policy

In accordance with Texas Government Code, Chapter 2161, Comptroller of Public Accounts (CPA) is responsible for administering the Historically Underutilized Business (HUB) Program for the State of Texas. This includes marketing the HUB Program, certifying minority and woman-owned businesses as HUB’s, facilitating the use of HUB’s in state procurement, and providing information on the state's procurement process to minority and woman-owned businesses. It is the policy of the Texas Alcoholic Beverage Commission (TABC) to comply with the Comptroller of Public Accounts adopted HUB rules, Texas Administrative Code (TAC), Title 34, Part 1, Chapter 20, Subchapter B 20.11 – 20.28 and Texas Government Code, Title 10, Subtitle D, Chapter 2161 in order to encourage the use of historically underutilized business (HUB’s) and to achieve these goals through the use of race, ethnic, and gender neutral means. The goal of this program is to promote full and equal business opportunity for all businesses in the agency's contracting.

The CPA administers the state's Historically Underutilized Business (HUB) Program in accordance with Texas Government Code and CPA Rules. State agencies shall make a good faith effort to utilize HUB’s in contracts in the procurement process of construction, goods, services (including professional and consulting), and public utility contracts. These initiatives are designed to eliminate barriers for equal economic opportunities in state purchasing for HUB’s.

In accordance with CPA's policy of encouraging the use of HUB’s by implementing these policies through a Good Faith Effort Program (GFEP) race, ethnic and gender neutral means. The purpose of the GFEP is to promote full and equal business opportunities for all businesses in state contracting in accordance with the goals specified in the State of Texas Disparity Study dated 1996.

The TABC will make a good faith effort to utilize HUBs in contracts for commodities, services, professional and consulting services and construction by contracting directly with HUBs or indirectly through subcontracting opportunities. The TABC shall make a good faith effort to assist HUBs in receiving a portion of the total contract value of all contracts that the agency expects to award in a fiscal year in accordance with the following percentages: 1) 12.6% for commodities contracts; 2) 33% for services contracts; 3) 20% for professional and consulting services contracts; 4) 57.2% for all special trade construction contracts; 5) 11.9% for heavy construction contracts; and 5) 26.1% for all other building construction contracts.

The TABC shall ensure it makes a good faith effort by implementing the following procedures: 1) advance planning of large purchases to ensure adequate time and preparation is involved; 2) when possible, divide proposed requisitions into reasonable lots in keeping with industry standards and competitive bid requirements; 3) when applicable, assess bond and insurance requirements to avoid unreasonable bidding restrictions and permit more than one business to perform the work; 4) specify reasonable, realistic delivery schedules consistent with the agency's actual requirements; 5) ensure that specifications, terms and conditions reflect TABC's actual requirements, are clearly stated, and do not impose unreasonable or unnecessary contract requirements; 6) when contracts exceed $100,000 the agency shall require contractors to make a good faith effort to award necessary subcontracts to HUB’s by providing contractors with HUB subcontracting good faith guidelines, HUB goals, and a reference list of available certified HUB’s; and 7) determine whether specific agency-wide goals are appropriate because some HUB groups have not been underutilized within applicable contracting categories and should not be included in the HUB goals for that category.

The TABC will maintain and compile monthly information relating to the agency's utilization of HUB’s, including information regarding subcontractors. Additionally, the TABC shall require contractors on awarded contracts exceeding $100,000 to report to the TABC on a quarterly basis, the identity and the amount paid to each HUB vendor to whom the contractor has awarded a subcontract for the purchase of supplies, materials, equipment, and services. The agency will ensure that internal and external reporting guidelines are in place to ensure tracking, control, and accountability.

The TABC shall maintain the designation of an agency HUB coordinator. The TABC HUB Coordinator and the purchasing section shall assist each division in locating, certifying, and making a good faith effort to use HUB’s in accordance with the agency's set forth policies, goals and procedures. Agency employees within each division that are engaged in recommending, requesting, or approving a particular vendor in the acquisition of goods and services and/or vehicle fleet repairs, will be held accountable for adhering to the agency's HUB policy. The HUB Coordinator shall actively participate and sponsor HUB forums, trade shows, training, and implementation of the agency's Mentor Protégé program to promote HUB sub-contracting.

1.2. WHAT IS A HUB?

A "Historically Underutilized Business" is an entity with its principal place of business in Texas, and is at least 51% owned by an Asian Pacific American, Black American, Hispanic American, Native American and/or American woman who reside in Texas and have a proportionate interest and demonstrate active participation in the control, operations and management of the entity's affairs who is a member of one or more of the following groups:

  • Black Americans - includes all persons having origins of Black racial groups of Africa;
  • Hispanic Americans - includes all person of Mexican, Puerto Rican, Cuban, Central or South America, or other Spanish/Portuguese culture or origin, regardless of race;
  • Asian Pacific Americans - includes persons whose origins are from Japan, China, Taiwan, Korea, Vietnam, Laos, Cambodia, the Philippines, Samoa, Guam, the U.S. Territories of the Pacific, or the Northern Marianas; and Subcontinent Asian Americans which includes persons who origins are from India, Pakistan, Bangladesh, Sri Lanka, Bhutan, or Nepal;
  • Native Americans - includes persons who are American Indians, Eskimos, Aleuts, or Native Hawaiians; and
  • American Women - includes women of any ethnicity, except those specified above.

In addition, the eligible group member or owner must exercise control over the daily affairs of the business and be active in routine management and administration of the business.

1.3. HUB CERTIFICATION

In accordance with Texas Administrative Code §20.28, each state agency shall make a good faith effort to utilize HUB’s in contracts for construction, services (including professional and consulting services) and commodities purchases.

The Statewide HUB Program provides HUB certification for minority and woman-owned businesses in the State of Texas. Vendors seeking certification as a HUB are required to submit a completed HUB certification application and supporting documentation, affirming under penalty of perjury that their business qualifies as a HUB.

To apply for certification as a historically underutilized business (HUB) a vendor must complete a HUB application and submit it to CPA.

For more information about the HUB Certification Program, contact the Comptroller of Public Accounts, Statewide Hub Program, Post Office Box 13528, Capitol Station, Austin, Texas 78711-3528, (512) 463-5872 or toll free at (888) 863-5881.

1.4. HUB Goals:

The Texas Legislature requires each agency to make a good faith effort to assure that HUB’s receive a portion of all contract dollars. During the fiscal year, an agency is expected to strive to meet the following HUB goals:

  • 11.9% for Heavy Construction Contracts (includes road & highway construction/maintenance)
  • 26.1% for Building Construction Contracts (includes general contractors & operative builders contracts)
  • 57.2% for Special Trade Construction Contracts (includes building renovations, maintenance and landscape construction)
  • 20% for Professional Services Contracts (includes architects, engineers, accounting, financial & medical services)
  • 33% for Other Services Contracts (includes legal, maintenance, repair, janitorial, printing, deliver, waste disposal, communications, and many other services)
  • 12.6% for Commodities Contracts

1.5. Our Commitment:

TABC is committed to the highest ethical standards in carrying out all purchasing activity. We are determined to spend money wisely to purchase the best products and services available. TABC's purchasing practices are guided by the Texas Building and Procurement Commission rules and regulations as described in the Texas Government Code, Title 10, Subtitle D, Chapters 2151 through 2176. The agency's HUB Program is located in the Purchasing Section and reports directly to the Texas Alcoholic Beverage Commission Executive Director. TABC strives to increase agency HUB participation by:

  • Participating in cooperative multi-agency efforts in vendor education & HUB recruitment; and
  • Increasing the amount of business solicited from certified HUB’s.

1.6. Contact Information:

If you have any questions regarding TABC's HUB Program, please contact the TABC HUB Coordinator:

Phone: (512) 206-3262

Fax: (512) 206-3274

E-Mail: purchasing@tabc.state.tx.us